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ABC Corporation acquired a new building for $1,000,000. The building has an estimated useful life of 40 years and a salvage value of $100,000. Requirements:

ABC Corporation acquired a new building for $1,000,000. The building has an estimated useful life of 40 years and a salvage value of $100,000. Requirements: a. Record the purchase of the building by ABC Corporation. b. Calculate the annual straight-line depreciation expense. c. Prepare the journal entry to record the depreciation expense for the first year. d. Determine the book value of the building at the end of the second year. e. Analyze the impact of depreciation on the income statement and balance sheet.

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